Future Group’s retail and wholesale business and logistics and warehousing business were bought by Mukesh Ambani’s Reliance Industries.
Mukesh Ambani’s Reliance Industries bought Kishore Biyani’s Future Group’s retail and wholesale business and logistics and warehousing business for a total of Rs 24,713 crore.
The project brings Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks under Future Group under Future Enterprises Limited (FEL). As a result, popular businesses like Big Bazaar, FBB, Foodhall, Ezide, Nilgiris, Central and Brand Factory are being sold to Reliance Retail and Fashion Lifestyle Limited (RRFLL) through Future Enterprise.
In addition, Reliance has proposed to invest another Rs 1,200 crore in a 6.09% acquisition of post-merger equity. In addition, Mukesh Ambani’s company will invest an additional Rs 400 crore through equity warrants, which will give Reliance Retail and Fashion Lifestyle a further 7.05% stake in Future Enterprise.
In a statement issued on Saturday, Reliance claimed that the acquisition would benefit hundreds of thousands of small businesses, which would help boost their business growth and revenue in the face of a severe economic crisis.
On behalf of Future Group, Group CEO Kishore Biyani said the transfer paved the way for a comprehensive solution to the problems faced by his company in the Covid situation. At the same time, the future of all shareholders, lenders, suppliers and employees involved in business with Future Group is secured, he said.